GST will put additional burden on common man: RSS labour wing

New Delhi: A key affiliate of RSS said on Thursday that it would oppose Goods and Services Tax as it would put additional burden on the common man, even though the BJP government termed it as historic and "perhaps the most important" tax reform.

The Bharatiya Mazdoor Sangh (BMS), a key affiliate of BJP's ideological mentor RSS, has said that it would raise its voice against the move and would chalk out further action at its national executive meeting later this month.

Representational image. Reuters

"GST is to ease corporate taxing. It will be a burden to the common man. BMS does not appreciate such moves and will raise its voice against it," BMS general secretary Virjesh Upadhyay told PTI.

He said GST will further burden the common man as corporates will get relaxation in tax under it and the government will gain in revenue collection, but it is the common man who will suffer.

"This is against the common man. It is not a step taken by the welfare state, which has to think about the welfare of common man. After GST, the prices of cars will fall and that of cloth will rise," he claimed.

Prime Minister Narendra Modi had on Wednesday hailed the passage of the Constitution Amendment Bill on GST by the Rajya Sabha as a "truly historic occasion" and thanked leaders and members of all parties for their support.

He said the GST would "also be the best example of cooperative federalism" and "together we will take India to new heights of progress".

Finance Minister Arun Jaitley termed the passage of the Bill as "historic" and said manufacturing taxes and VAT will come down with the new national sales tax but the same for services tax will be decided by states and the Centre.

The Goods and Services Tax (GST), which will subsume over a dozen central and state levies including excise duty, service tax and VAT, is "perhaps the most important" tax reform, he said.